591 - TCDD Genel Müdürlüğü - OnurRailway Companies

New model for TCDD


Change of legal status of TCDD and reorganization of it under various companies is on agenda.

As state agency (AA) announced previous day, a commission will be established for reorganization of railways. This commission will determine steps for reorganization of TCDD which will include splitting of different activities into different management units, aiming spread out of liberalization.

Legal status of TCDD to change

The most critical topic of news is that TCDD’s legal status will change. TCDD is currently a state economic enterprise which is liable to private law. Though no clue in news about how it’ll change, a change similar to airways and THY is expected. That would mean TCDD will be transformed to stock company as a whole or in various entities.

TCDD to split into entities

It’s stated in the news that construction and maintenance units of infrastructure, network management, safety management, audit units, ownership, manufacturing and maintenance of rolling stock will be splitted into independent entities. Some steps have already been taken about this, such as TCDD Tasimacilik in operation and Turasas in manufacturing of rolling stock.

New companies on way

Liberalization mostly ended with split of state railways into 3 pieces in most companies like Serbia, Bulgaria, Hungary: Infrastructure, passenger and freight. Passenger transportation is subsidized/controlled by state where freight side started to compete with private companies. Split of passenger and freight into different companies is not on agenda, at least not for now.

On the other hand, news pointed a more detailed reorganization. The units of construction, maintenance, network management, audit which are departments under TCDD, manufacturing and maintenance of rolling stock which are units under Türasaş will be on the table. Another interesting point in the news is that “ownership of rolling stock” is mentioned. That seems to point out a new company which owns all rolling stock which can be rented to state and private operators.

Private companies to be encouraged

Split of units into independent entities will surely clear the way for private companies, which is already stated as the mission of the commission.

The most critical one of these possible independent units will surely be rolling stock company. Two private operators had once started operation by renting locos and wagons from TCDDT. If all passenger and freight wagons will be given to a fleet company and if any state/private operator will have chance to rent them with equal terms, the private operators which seem to hesitate investing in rolling stock at the beginning will be encouraged. That may mean new freight operators as well as new private companies in passenger transportation.

The activities of private companies are not limited to train operators. There are private freight wagon manufacturing and maintenance companies, though having little share from the market. TCDD Tasimacilik is currently buying new wagons and maintenance service from state company. Private companies sell only to private companies or work as subcontractor for state company. This reorganization in manufacturing and maintenance may support private companies.

Cover photo: Onur Uysal ©

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